CFPBs

Federal Judge Reverses CFPB’s Medical Debt Exemption, Citing Fair Credit Reporting Act Violations

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A federal judge in the United States has invalidated a rule from the Consumer Financial Protection Bureau (CFPB) that aimed to remove medical debt from credit reports. The ruling drew attention to the limits of the agency’s authority, asserting that the proposal violated the Fair Credit Reporting Act. The CFPB’s initiative was based on extensive research suggesting that medical debt does not reliably indicate an individual’s ability to repay loans. The agency anticipated that the removal of such debts could lead to an average credit score increase of 20 points for millions of consumers, thereby … Read more

ACA International Challenges Federal Authority with Lawsuit Against CFPB’s Latest Medical Debt Regulations

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Washington, D.C. — ACA International, a trade group representing the collections industry, has initiated legal action to counter what it perceives as excessive federal overreach. The lawsuit targets the latest rule from the Consumer Financial Protection Bureau (CFPB) that seeks to regulate medical debt collection practices. ACA International argues that the new regulations could severely impact their business operations, accusing the rule of being overly burdensome and lacking adequate justification. The CFPB’s newly finalized rule is part of a broader initiative by the Biden administration to alleviate the financial burden of medical debt on American … Read more

Federal Judge Strikes Down CFPB’s $8 Credit Card Late Fee Rule, Upholding Higher Charges as Per CARD Act

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FORT WORTH, Texas — A federal judge in Texas has handed a significant setback to the Consumer Financial Protection Bureau (CFPB) by ruling against its recent regulation that would drastically lower credit card late fees to $8, describing the move as an overreach of the bureau’s authority. The decision emerged from U.S. District Judge Mark T. Pittman, who is predicting a likely failure for the CFPB’s initiative based on his assessment. Judge Pittman, appointed under the Trump administration, articulated that the rule contradicted the provisions of the Credit Card Accountability Responsibility and Disclosure Act of … Read more

Texas Judge Moves Lawsuit Challenging CFPB’s $8 Credit Card Late Fee Rule to D.C., Dealing Blow to Credit Card Industry

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FORT WORTH, Texas – In a blow to banks and credit card issuers, a Texas judge has agreed to move a lawsuit challenging the Consumer Financial Protection Bureau’s $8 credit card late fee rule to the District of Columbia. The ruling by Judge Mark T. Pittman is a setback for the U.S. Chamber of Commerce and five other trade groups that sued the CFPB in March to stop the rule from taking effect on May 14. The CFPB accused the trade groups of engaging in “forum shopping” by filing the case in Texas to find … Read more